GameStop announced on Thursday that it had reached an agreement with a group of banks for a new $500 million worldwide asset-based credit facility to help it strengthen its liquidity, as the gaming retailer continues to invest heavily in its e-commerce strategy.
According to the business, the five-year credit agreement replaces GameStop's old $420 million credit agreement, which was due in November 2022, and will lower borrowing costs and provide greater flexibility.
Wells Fargo Bank was the primary arranger and will be the administrative agent for the facility.
GameStop, which raised $551 million in late April, raised more than $1 billion in a June stock offering, capitalizing on a social-media-fueled spike in its stock price in early 2021.
Chairman Ryan Cohen has hired executives from firms such as Amazon in a bid to shift the company's focus away from brick-and-mortar and toward e-commerce.